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Business, 25.09.2020 01:01, ianmartin6080
Jimmy has fallen on hard times recently. Last year he borrowed $343,000 and added an additional $73,000 of his own funds to purchase $416,000 of undeveloped real estate. This year the value of the real estate dropped dramatically, and Jimmy’s lender agreed to reduce the loan amount to $316,000.
For each of the following independent situations, indicate the amount Jimmy must include in gross income: (Leave no answer blank. Enter zero if applicable.)
a. The real estate is worth $253,800 and Jimmy has no other assets or liabilities.
b. The real estate is worth $325,100 and Jimmy has no other assets or liabilities.
c. The real estate is worth $277,800 and Jimmy has $47,200 in other assets but no other liabilities.
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Answers: 3
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Jimmy has fallen on hard times recently. Last year he borrowed $343,000 and added an additional $73,...
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